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March 13, 2023 - Health Ranger - Mike Adams
01:03:11
Situation Update, 3/13/23 - The Non-Bailout BAILOUT commences...
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Time Text
Welcome to the non-bailout bailout on this Monday, March 13th, 2020.
Mike Adams here, the original author of I Want My Bailout Money, featured on the front page of the Wall Street Journal in 2008.
Here's about 40 seconds of my song from 2008 back in style.
I want my bailout money.
Here's about 40 seconds of my song from 2008 back in style.
Ain't nothing going down unless the crooks in Washington let it.
Now they regret it, but they still don't get it, cause the economy is crashing so bad.
He's a paramedic.
I want my bail, I want it.
Sweet, win cash, just dripping with honey.
Gotta keep this economy running.
I need another head alone.
All right, there you go, folks.
It's always back in style.
I want my bailout money.
And, of course, that's what everybody was screaming for over the weekend.
And they got it.
They got their bailout money.
Or money, as I say in the song.
They got the bailout money.
But, of course, the Treasury officials and the Federal Reserve, oh, Janet Yellen, she's out there saying, this is not a bailout.
This is a non-bailout bailout.
That's what we're being told right now.
It's a non-bailout bailout.
So in case you're just getting up to speed on this, you know, last week, two banks collapsed in America.
Silvergate and Silicon Valley Bank, SVB. And then, you know, another bank collapsed on Sunday.
You know that?
Signature Bank out of New York, yeah, collapsed on Sunday.
Three banks collapsed in one week.
And, of course, the Treasury officials were all freaking out, realizing that come Monday morning, today, if they hadn't have done something big, pretty much everybody in the whole country is going to start taking all their money out of all the banks.
They're going to crash the whole freaking system.
Which, that may still happen.
I'm not sure it's been entirely averted, but the Fed, well, the Treasury, excuse me, stepped in.
And they announced yesterday that they were going to bail out all the depositors of these three banks.
But they don't call it a bailout.
It's a non-bailout bailout.
Don't forget that.
Because, you know, everything's word games now.
Everything's mind games.
Everything's like free money for everyone.
No one has to pay for anything.
That's what they're saying.
Like, we're going to bail out all the depositors, but it's not a bailout and nobody has to pay for it.
That's what they're telling us right now, if you can believe that.
Nobody has to pay for it.
They've said that.
This will not be paid by taxpayers.
You know, because people would be angry.
Bailing out a woke Silicon Valley bank that caters to the ultra-wealthy, by the way.
A bunch of rich people, for the most part, who had, some of whom had hundreds of millions of dollars in there.
And many of them had tens of millions.
Why are we bailing them out?
So, of course, Yellen had to come out.
So it's a non-bailout bailout, and no one has to pay for it, because it's just free money.
Well, you, listening to this, you are high IQ, well informed.
You know that money doesn't just grow on trees.
It comes from somewhere, right?
So where did it come from?
And, by the way, will it stop the contagion?
Will it stop the collapse?
We'll talk about that in a second.
The money came from the FDIC, and they have their pool of cash that they call the Deposit Insurance Fund.
So, you're going to hear a lot about this over the next couple of weeks, so let's just dig into how this thing works.
The FDIC is basically an insurance company, except it's run by the government.
But it functions a lot like an insurance company, and they charge an insurance premium, you could say, a fee to each bank that operates in America.
And it's a fee assessed on essentially two things.
The total size of the bank's deposits, like, oh, here's a bank that's got $100 billion in total deposits.
And then there's a risk classification factor.
So some banks are low risk and some banks are high risk.
Just like somebody who's buying car insurance.
If they're a low risk driver, they get cheaper insurance.
And if they're a high risk driver, they have more expensive insurance.
Or if they're a really high-risk driver, they have no insurance, which is the case with illegals driving down the highway in Texas, by the way.
No driver's license, no insurance.
High, high risk.
In any case, banks operating in America pay a fee to the FDIC, which is an insurance premium.
And in return for that...
The deposits at the bank are covered by the FDIC up to $250,000 per depositor.
Not per account, by the way.
Per depositor.
In other words, per person or per entity.
But if that same person has multiple accounts at the bank, those multiple accounts are not necessarily covered.
The coverage tops out at $250,000.
So the FDIC... Right now, give or take, this is the best number I could find, is sitting on about $25 billion in this insurance premium money, basically, that they've collected from commercial banks all across America.
They've got $25 billion.
$25 billion, right.
And they just decided that they're going to use all of that, or potentially all of it, to bail out the depositors.
At Silicon Valley Bank and Silvergate and Signature.
All right?
So stay with me here.
$25 billion is what the FDIC has, and they're going to bail out all three banks with this $25 billion.
Now, Silicon Valley Bank alone had $209 billion in deposits.
All right?
Let's see.
Is 209 greater than 25?
Do-do-do-do.
Mm-hmm.
Yes, it's a lot greater than 25.
Now, of course, all the deposits in SVB are not 100% lost.
The bank still has assets.
It's just long-term bonds that won't pay out for a long time, or you have to sell them at a deep discount and realize all kinds of losses.
So, yeah, the bank's going to lose a lot of money.
It might lose 40 cents on the dollar or something like that.
We'll see.
Maybe more if the Fed keeps raising interest rates.
It's going to lose a lot of money.
So let's say that the total losses, let's say that SVB loses 25% only.
On its deposits.
Because, you know, under the FDIC stewardship here, it's selling off these assets and then trying to make whole all the depositors.
So if they lose 25%, let's call that roughly $50 billion.
So $50 billion in losses is what we could see from SVB. And that's just one bank out of three, by the way.
The FDIC has $25 billion in total losses.
In insurance premiums from all the banks in the entire country, $25 billion.
But somehow it has to cover $50 billion, which is twice $25, right?
So bailing out SVB alone, listen carefully, is going to wipe out the FDIC. The FDIC will be wiped out.
It'll be zeroed out.
And it'll...
Oh!
Somehow they're going to have to come up with...
More money.
Now, where do you suppose this more money is going to come from?
Oh, that's right.
They're going to print it.
They're going to print it and they're going to borrow it from the Fed and they're going to dump this money essentially into the money supply.
By bailing out depositors.
Again, the non-bailout bailout.
And they're going to say that taxpayers don't have to foot any of this bill because, you know, it's just money that they're printing out of thin air.
And they're going to say, see?
The government came to the rescue.
We made everybody whole.
And they're never going to mention the real cost of how everybody pays for this.
And that answer is inflation.
Because, of course, they're printing more money.
And lots more.
It might be hundreds of billions of dollars that they have to print as more banks fail.
Right?
Because this is the precedent that they're setting now.
Is that, okay, every time a bank fails in America, three in one week now, every time a bank fails, we'll just print more money.
And then we'll just pay off all the depositors.
You know, basically the FDIC at this point is broke.
The FDIC is bankrupt.
And the Fed's going to have to print the money and bail out everybody.
So we've entered the chapter of government money printing bailouts of bank depositors while the banks themselves will be given a free license to go ahead and operate in a reckless, risky way.
Why?
Well, because there's no consequences.
Well, who cares about risk aversion?
What risk?
Who cares about risk?
There's no risk.
FDIC is going to step in and just give us more money.
I want my bailout money.
Sweet green cash dripping like honey.
Got to keep this economy running.
That's right out of the song.
I need another hit of my bailout money.
So here it is, another hit.
So they say you're not paying for this, but you will pay for it every time you go to the grocery store.
You'll pay for it when you buy a dozen eggs.
You'll pay for it when you fill up your tank with gasoline.
You'll pay for it in higher prices of everything.
Housing, consumer goods, clothing, whatever.
You'll pay for it everywhere, every day.
Because the more money they print, the more they dilute the dollars that are already out there, which, as we've mentioned here, are already losing about 2% per month in purchasing power.
That number is going to go even higher.
It might jump to 2.5% per month.
Or if this continues, maybe 3% per month.
Yeah, that could be where this goes.
Because, you see, by doing this bailout, I'm sorry, non-bailout bailout, The FDIC is saying to the banks, do whatever you want.
Go crazy.
Make all kinds of risky bets.
If you win, you get to keep the profits.
If you lose, we'll bail out your depositors.
Now, it is being pointed out that this non-bailout bailout is not bailing out the stockholders of Silicon Valley Bank, nor the bondholders of the bank.
So in other words, investors in the bank itself are Which, they're only a tiny fraction of the bank's deposits, by the way.
But investors in the bank are going to lose money.
It's just that depositors in the bank are not going to lose money because all this money is going to be printed and used to pay them off.
Okay.
Well, so in other words, it's just changing the rules.
Again, this is the Biden administration just making crap up as they go along.
We're just going to change all the rules.
You know, last week it used to be that you were covered up to 250k.
This week, we just say, and everybody else.
For unlimited amounts of money, we're just going to cover everybody for everything.
So wait a second.
So how's the FDIC going to remain solvent in this scenario?
Because I did a little research on this.
The FDIC, as I said earlier, has about $25 billion in cash.
Well, maybe not anymore, but that's what they had last week.
Guess what the total amount of deposits is in all the commercial banks across America in the aggregate?
The total amount of deposits, what is it?
In billions, it's $9,294 billion.
In other words, $9.3 trillion.
Or...
And those are older numbers, so frankly at this point it could be about $10 trillion.
Let's just round it to $10 trillion.
That's an easy number to work with.
$10 trillion in deposits all across America in all the banks.
So the FDIC basically just said, well Janet Yellen just said, basically we're now insuring $10 trillion in deposits instead of some tiny fraction of that that they had claimed to be insuring as of last week.
So they're insuring $10 trillion in deposits with $25 billion in cash.
That's already gone as of today, by the way.
So technically, they're insuring $10 trillion in deposits with $0 in insurance assets.
The FDIC is done as of today.
Because everybody's going to go to Silicon Valley Bank and take all their money out.
And that's going to be more than $25 billion in losses, by the way.
So again, the FDIC is zeroed out today, and yet they claim to cover $10 trillion in deposits.
What's going to happen when another bank fails next week?
Huh?
Oh, you think that these three, that these are the last three that are ever going to fail?
No, of course not.
There are going to be more failures.
Yeah, because, well, the whole system has become a farce.
Because, of course, no one in government will allow economic laws of cause and effect to play out.
Everything's got to be a bailout.
Everything's a rescue.
Everything has to be, you know, rejiggered, as they say.
Fixed, repaired.
Student loan bailouts, another Biden administration fiasco is like, let's just make up a new rule where nobody has to pay anything back ever.
Wow.
This sounds a lot like that, doesn't it?
Let's make up a new rule where everybody's just covered.
Okay.
Huh, what a coincidence that that happened after all your lefty, woke friends in Silicon Valley, suddenly when they lost money, now the rules change.
I see.
Okay.
But $10 trillion is not the end of all this.
$10 trillion, let's say roughly that's the total deposits in commercial banks across America, but Banks are covered for more than just deposits.
Banks are also assessed by the FDIC for their liabilities.
Did you know that?
It's not just deposits.
It's deposits plus liabilities.
Yeah.
And where do banks get liabilities?
Well, for example, some banks have liabilities by selling derivatives to other banks.
And then the potential exposure from that derivative is a liability to the issuing bank.
Got it?
So, if you do the math on this, and you kind of add up all the derivatives exposure across all the commercial banks in America, conservatively, that's something like $300 trillion.
So, 30 times larger than the total deposits.
$300 trillion.
And again, that's a conservative number.
Some people put that estimate at more than a quadrillion, so a thousand trillion.
So here's the question.
How does the FDIC, which now has zero dollars as of today, how do they insure not just the 10 trillion dollars in deposits, but then the at least 300 trillion in liabilities that could come due if one of these larger banks fails?
How do they do that?
And the answer is very simple.
It's very simple.
Janet Yellen to the rescue.
She is going to crank up the money printing machine.
You know, with Powell, of course.
They're going to crank it up.
And, you know, the Fed and the Treasury hand in hand, la la la, frolicking down the yellow brick road, and they're going to print and print and print like mad.
They're going to print whatever it takes to bail out anybody for as long as it takes until the whole damn system comes crashing down.
They're going to print until the end.
They're going to blow out the dollar.
Because even the FDIC says that, well, it's backed by the, quote, full faith and credit of the United States of America.
Which means the money printing machine.
That's what that means.
So the government's going to print.
The Fed's going to print.
Treasury's going to issue.
Now, of course, you know that every dollar they print is a debt instrument.
So the taxpayers actually owe that back.
So the full faith and credit of the United States government is Really means the full ability to coerce future taxpayers and confiscate their money to pay back the Fed because the Fed is issuing debt instruments and lending them to the Treasury, right?
So every dollar they print to bail out Silicon Valley Bank and all these woke leftists who run really risky investment schemes, every dollar they print is a dollar that we the people owe.
So when Janet Yellen says that none of this, none of the costs will be incurred by taxpayers, she's lying.
She's lying.
All of it will be incurred by taxpayers.
100%.
Because you can't just create debt out of nothing with no consequences.
The debt falls on the shoulders of all of us and our children and their children until the whole system collapses.
She says 0% paid by taxpayers, but it's actually 100%.
So she is a 100% liar.
No surprise.
Now, CNBC is currently reporting.
They're quoting Treasury Department officials and so on.
They're reporting that the FDIC actually has $100 billion.
Well, as of yesterday.
So the $25 billion that I've been mentioning here, that's what has generally been known as how much money the FDIC has.
Now, they claim it's $100 billion.
Suddenly, where do they get the $100 billion?
Well, they got it from the Fed.
They already printed money to make sure the FDIC has $100 billion.
Is this $100 billion enough to bail out Silicon Valley Bank and the other two banks?
Maybe, maybe not.
But it's going to be pretty close to zero by the time they're done bailing these banks out.
So even if you believe the FDIC has $100 billion, it's going to be gone.
And then what about the bank failures next week and the week after and the week after?
See?
So anybody out there saying that this will not be, these costs won't be shouldered by the taxpayers, they're lying.
Every dollar that's printed is a debt instrument that will be shouldered by the taxpayers.
And even if this $100 billion, this claimed $100 billion that just suddenly came out of nowhere, like, wow, shazam, we have $100 billion.
Even if this is enough for now, for this week, I mean, we had three banks fail in one week, folks.
What about the $10 trillion in deposits?
And what about the fact that interest rates keep going up and that the Fed indicated last week that he was going to continue to raise interest rates And that as a result, people would be foolish to leave their money in banks when they can just, let's say, buy treasuries, which would pay higher interest rates.
You can just go on to the Treasury Direct website.
I think it's treasurydirect.gov.
I'd have to check, but I think that's it.
You can just link it to your bank account right there, and you can buy treasuries until you get tired of it.
That transfers money out of your bank and into the Treasury Department.
yield probably than what your bank is giving you.
So when interest rates keep going up, why wouldn't everybody just, again, take their money out of the bank and buy treasuries with it, which would cause a kind of a run on the banks.
All these banks would lose deposits, right?
And everybody buying treasuries.
And then more banks fail.
And so then the treasury calls up the Fed and says, print Mo money so that we can have Mo money at the FDIC to bail out the depositors at these failed banks that failed because everybody's buying treasuries because interest rates are going.
It's this endless cycle of insanity.
This fiscal blowout phase that we've now entered, right?
That's what's about to happen.
And then there's just going to be a lot of people who don't understand any of this.
They're just like, I just don't trust the banks.
Just, I'm lining up, giving my cash.
That's it.
They don't want to understand economics.
They don't need to understand economics.
They don't understand risk assessment.
What they know is that their money is safer under their mattress, in their minds, than in the bank.
I mean, again, you could argue that that's not actually true.
Because, you know, your mattress can burn down or thieves can get it or whatever.
But, hey, it seems like thieves are getting it in the banking system too, right?
But a lot of people are just going to say, you know, enough is enough.
If three banks failed last week, I'm going to take my money out, right?
Even if it's not, let's say, risk rational to do so.
Lots of people will do so because they don't necessarily understand what's happening.
And maybe it's not irrational to do so.
In fact, probably the most rational thing is to go buy gold and silver and put that under your mattress.
Because if your house burns down, gold and silver don't burn up.
They're still gold and silver, right?
The very rational thing to do is probably to...
Exit some portion of your assets out of the banking system and put them in another asset that is resilient against the rise and fall of civilizations and banking systems and financial crashes.
That's a very rational thing to do with some portion of your assets, and that's why a lot of people are doing that.
There's even people right now that are buying crypto.
Because even with the insane volatility of crypto, some people are looking at crypto right now and saying, well, that's less risky than leaving it in a bank.
You know?
I mean, are they right?
Are they wrong?
I don't know.
That's for you to decide.
But it is noteworthy that two of the three banks that were just bailed out were crypto-heavy banks.
You realize that?
Signature and Silvergate were both crypto banks.
So...
You realize the FDIC just bailed out crypto.
Huh.
Isn't that interesting?
And you know, an important argument in favor of crypto in this case is, well, you know, the Treasury and the Fed, they can just print unlimited amounts of money and flood the system with dollars, which apparently they're doing now.
And just flood the money supply and make your dollars increasingly worthless.
But in crypto, that's not the case with established blockchains, right?
There's mathematical scarcity built into the system.
Every established coin, like Bitcoin or what have you, Or Ethereum, you know, has established systems of scarcity.
So they can't just create coins out of nothing.
Although somebody could create some other competing coin out of nothing, it's not an established existing coin with a large user base.
You might be asking, by the way, how do I know?
How do I know that they're going to keep printing money and handing it out to banks?
Because I read the news?
Wall Street Journal, Sunday afternoon.
Okay, here it is.
First Republic gets additional funding from Fed, JP Morgan.
So First Republic is a bank.
And the Wall Street Journal reported yesterday that the bank has shored up its finances with additional funding from the Federal Reserve and JP Morgan Chase.
The fresh funding gives the bank...
Which was under pressure following the collapse of Silicon Valley Bank, by the way, see, contagion, gives the bank, check this out, $70 billion.
Oh, oh, $70 billion?
I mean, even if you believe the FDIC has $100 billion, which is probably an exaggeration, Just this one bank received so much money, that's 70% of what the FDIC has in its entire total reserves to cover, what, $10 trillion in deposits and $300 trillion in derivatives or more?
So just one bank!
And by the way, if they hadn't done this, this would have been bank failure number four.
First Republic Bank, see?
There are, I'm told there are three or four other banks that are on the verge of failure right now.
And there's an emergency cash infusion happening to these banks to stop them from collapsing today.
And First Republic Bank is one of those banks.
So the Fed, let's just say it the way it is, the Fed is printing money and handing it out to banks.
To keep them solvent and prevent a total collapse of the entire banking system.
A collapse which has already begun, but has apparently been delayed with cash infusions.
But this is the stage that we're at right now.
And of course, myself and many others, we've been warning about a systemic bank collapse for many years.
I've been watching for this day since 2008.
We knew this was coming.
We just didn't know exactly when.
But we knew it was coming because the systemic problems that were readily apparent in the subprime mortgage collapse of 2008, those problems were never fixed.
Frank Dodd was never fixed, right?
These problems got worse and worse.
The greed became more intense.
The lies more intense.
And now we're at the point, right now today, where the Federal Reserve is printing, let's say, in this case, $70 billion and handing it out to just one bank to stop that bank from collapsing.
Now, how many other banks are getting $50 to $100 billion this week?
Probably maybe half a dozen, I'm just guessing, but could be half a dozen.
So the Fed's just whipping out hundreds of billions of dollars and handing it out to banks to stop systemic failure.
Hmm, how long can this go on?
Now, if Janet Yellen and federal officials, or Fed officials, excuse me, if they thought that this was the way to stop a bank run and to shore up faith in the system, boy, were they wrong.
If anything, this is freaking me out worse than if they had done nothing.
This is totally freaking me out because it's like, whoa, how weak is the system exactly?
That they have to throw $70 billion at one bank.
How many banks are in this situation?
How many hundreds of billions of dollars are going to be printed this week and handed out to banks?
To me, that's a reason to get my money out of these risky banks and get it into something else, either more fiscally conservative banks, let's say, or something that can survive a bank collapse.
I mean, this, again, this is practically an admission that the system is on the verge of failure, obviously.
Otherwise, believe me, the Federal Reserve officials and Treasury officials wouldn't be working over the weekend.
They don't work on weekends.
They fly their private jets to golf games and, you know, special black tie dinners or whatever.
They don't work on the weekends unless something's about to crater.
And that's where we are.
This whole system just about cratered.
And now they're patching it up with cash infusions.
This is like hitting junkies with an extra dose of heroin.
Jabbing with heroin.
Adrenaline.
Adrenaline in the heart.
Jab it!
How long can this go on?
Now again, you're going to be paying for this in inflation and dollar devaluation.
And remember that as dollars continue to lose value as the Fed keeps printing its mad money machine, you have the BRICS nations and China and Iran and India, major announcements last week about all their cooperation, Russia too, and Turkey and Brazil.
Did I say India?
All these countries cooperating with their own non-dollar financial transaction system that will hold value.
So the dollar is in a blowout phase.
It's moving into hyperinflation.
That's where it's going.
It's not there yet, but that's where it's headed.
The banking system is on the verge of total collapse.
Literally, the whole system would have collapsed today if not for the emergency announcement By the Fed and Treasury yesterday, okay?
It would have all collapsed today.
That's how close we are to the edge of this.
That's how fragile it is.
And yet these other countries that I just mentioned are about to launch their own system to replace the dollar.
And in fact, they're already settling international transactions in non-dollar currencies.
You know, like the yuan and the ruble and whatever, the rupee and so on.
So that transition is happening, which means that the ability of the United States to sell its debt is heavily compromised.
Heavily compromised now.
And by the way, I think today or tomorrow, there's another, what, $200 billion in newly issued treasury debt that's about to hit the market.
And the question is, who's going to buy that?
And let me tell you, The buyers will demand higher rates.
Rates, that is treasury rates, are going to spike.
Spike higher, which of course increases the cost to service the national debt, which is right now over $31 trillion.
And based on new spending that Joe Biden wants to carry out, the news last week was that national debt was going to hit $50 plus trillion by the year 2030, which is not that far away.
$50 trillion in debt?
I don't think the system exists in 2030, frankly.
I'm not sure it lasts another two years at this point.
It wouldn't have lasted today if not for the intervention.
It would have been over today.
So it's not just a solution where we say, oh, we can solve this.
We can print money.
You have to sell the debt to other buyers around the world in order to keep printing money.
You have to sell the debt.
And in order to sell the debt, you have to keep raising – I mean you as the Fed or the Treasury, you have to keep raising the interest payments that you'll pay on the debt to the potential buyers other than you.
Otherwise, they won't buy it because the United States debt begins to look increasingly risky to other banks or investors, institutional investors, other central banks of other countries and so on.
The U.S. dollar looks increasingly risky with a potential bank failure here.
And you can see where this goes.
This spirals.
Well, it's a death spiral.
Financial death spiral.
And it's going to accelerate, I think, very quickly, sadly, because they just won't stop printing money.
Now, CNBC reported late last night that Goldman Sachs says they no longer expect the Fed to hike rates this month, citing, quote, stress on the banking system.
Yeah, stress.
The near collapse of the banking system.
So let's see.
Goldman Economist Jan Hatzius said, quote, in light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22nd.
And the firm expects the latest measures to, quote, provide substantial liquidity to banks facing deposit outflows, right, people taking their money out, and to boost confidence among depositors.
So this is a good question.
Will the Fed raise rates on March 22nd?
If they do, it's like they're murdering the banking system.
Now, you might say, well, they want to do that.
They're trying to do that.
Maybe this is part of their great currency reset plan, and then they're going to roll out central bank digital currencies as their rescue plan.
Like, oh, did you lose all your money in the bank?
Well, good news!
We have all your money waiting over here.
Just bring your fingerprint and your biometric ID and your palm for the microchip implant.
You know, just bring it over here, and then you'll have access to all your funds.
We promise.
And then you have to sign up for the Mark of the Beast system to get your money back out, right?
Some people believe that's what's happening.
It may very well be that.
I mean, I've proposed that idea as well.
I can't prove it, but it very well could be what's happening.
But if they keep raising rates, they are absolutely...
I mean, this is a controlled demolition of the U.S. banking system, essentially, if they keep raising rates.
And again, maybe that's the plan.
But you and I need to understand that that's the plan, or potentially the plan, and we need to take steps to survive it.
And believe me, I had discussions over the weekend with the people around me and the company leaders at HealthRangerStore and everything.
We're taking major steps to reduce risk exposure to the banking system as much as we can, It's impossible to avert all risk, but we're doing as much as we can because I think a day is coming when the banks just declare a giant holiday bail-in bank freeze and everybody's money is all locked up.
And they basically say, well, guess what?
The economy has ground to a halt and we're declaring a national emergency.
And then we're just going to seize everybody's accounts.
That day is coming.
Now, what's interesting is that even though Goldman Sachs just announced that they think that the Fed won't raise rates in March, they're not saying that they think the Fed will reverse its position and start lowering rates.
Because they're saying, and this is on CNBC, they're saying that they still expect to see, quote, 25 basis point hikes in May, June, and July.
Reiterating their terminal rate expectation of 5.25% to 5.5%.
So 25 basis points, of course, is a quarter of a percentage point.
And if those rate hikes take place in May, June, and July, then by the summer the U.S. economy is in shambles.
And the number of banks that will fail between now and July will be historic.
Until Silicon Valley Bank just failed, the biggest bank failure in anybody's recent memory was Washington Mutual in 2008, which had, I don't know, what was it?
$150-plus billion in assets?
Something like that.
Or, I don't know, maybe it was over $200, but it was something in that ballpark.
Well, Silicon Valley Bank at $209 billion is the biggest failure since then, since Washington Mutual in 2008.
That's a lot of years to go by without any major bank failure.
And now here we are.
And if they keep raising rates, we're going to have bank failures every month, if not multiple banks failing every month.
And the question is, you know...
What bank is safe?
So you know, as part of this bailout, I'm sorry, non-bailout bailout, what they did, they designated these banks to be, quote, systemically important banks, SIBs.
That's right.
That's an actual term that they use at the Treasury and the FDIC, systemically important banks.
Basically, this is another way to say too big to fail.
Okay?
Okay.
So if one of these banks...
Now, by the way, none of these banks that just failed were previously considered systemically important banks.
They declared this retroactively to justify the non-bailout bailout.
So in retrospect, they said, oh, well, these are so important.
We can't let them fail because, well, there's a contagion risk.
Therefore, we have to bail them out.
So now what they're doing as a result of this They're saying that, okay, your money is still not safe in most banks because they haven't declared most banks to be, quote, systemically important banks.
And the question is, if your bank fails, will they declare that bank to be systemically important?
Or not systemically important?
Systemically unimportant banks.
There's the question.
So, in essence, you see what they've done is they've created a two-tiered banking system.
They've created tier one, which is, quote, systemically important banks, and nobody knows when that designation is going to be issued for which bank at which time.
It's just randomly, oh, suddenly we declare it, right?
You can't predict any of this.
And then the second tier is the non-systemically important banks, which is most banks, by the way.
And in the second tier banks...
If they go under, are your deposits insured for more than $250K? No, they're not.
Probably not.
We could also replace the phrase systemically important bank with super special banks.
So apparently Silicon Valley Bank was a super special bank because, of course, it's all woke.
It's friends of the administration.
It's the friends of the wealthy, the friends of the people in Washington, you know, friends of the senators, and so on.
So super special bank, they get bailouts.
Non-super special banks, they get to pound sand.
That's, yeah, they get to face plant and bust out all their teeth and bleed on the floor.
That's what most banks are going to be facing here.
So if the FDIC thought that this action was going to halt bank runs, they vastly underestimate the level of education of informed Americans here.
Because we know that this doesn't mean anything about most banks.
This doesn't mean the FDIC is just going to cover all deposits all across the country.
Which, if you think about it, if they really wanted to stop contagion and they just wanted to have blanket coverage for all $10 trillion, why don't they just say that we're just going to cover all deposits for all the banks?
End of story.
Why don't they say that?
And the answer is because that would invite total bank fraud.
The bank owners would then say, wow, are you kidding me?
All our deposits are going to get bailed out no matter what?
Holy cow!
You know, where do we go to the bank casino and start rolling the dice here?
It would be insane!
It would just be bankers making risky, risky, crazy bets and then opening up accounts for themselves.
Like, oh, here's an account, a million dollar account for you and your sister and your cousin and your wife.
Oh, look, they're all insured by the FDIC. Let's just roll the dice.
I mean, there would be organized bank fraud at a level that we've never seen before.
Why?
Because, well, it's essentially free money if the FDIC says we're going to bail out everybody.
Which is partially what they just did.
So they're encouraging this behavior already at some level.
This is going to be disastrous for the banking system.
This is the FDIC, let's say, coming home, let's say parents coming home to your high school kids' party at your house when they thought you were going to be on vacation for two more days and you come home early and your house has been turned into this giant frat party.
Where there's beer, the tables are broken, there's used condoms all over the stairways.
Total mayhem in the house.
Your house has been turned into a frat party.
You come home.
That's the FDIC discovering what Silicon Valley Bank did.
And then if you come home to that, you don't say, oh, you're good, just continue, we'll be back later.
No, that's not what you do as a parent.
You know, you say, what the bleep?
You know, you whoop some ass.
You send everybody home.
You ground your kids for five years, right?
You're grounded until you get out of college.
Or something along those lines.
You have to have repercussions.
But the FDIC just says, oh, continue the frat party.
Go ahead.
Party on, party animals.
We're the FDIC. We get money from nothing.
And no one has to pay for it.
No one has to pay.
The taxpayers don't have to pay.
Nobody has to pay.
It's free money forever.
You know, until the music stops.
To summarize that, this is the FDIC saying, party on, Garth.
You know, basically.
Party on.
So it's sending a signal that banks should be more risky and more insane and less responsible and more reckless.
And it's all good.
It's all good because money's free.
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Anyway, see if that's right for you, metalswithmike.com.
In the meantime, watch your back.
Make sure you have backup plans for all assets.
So let me conclude this, by the way, with...
Let's do a summary of best case and worst case here, okay?
And, by the way, in the short term, you know, I'm glad the banks aren't collapsing today.
Gotta admit, I mean, I don't want the banking system to collapse either.
You know how much money that my company would lose if the system goes down?
We would lose a lot of money.
Everybody would lose.
Everybody loses if the system craters.
Which is why it's so crazy that...
The regulators and the government keep making these decisions that will ultimately lead to the total collapse of the system, but not today.
So I'm glad it still functions today.
And yeah, the FDIC stepping in has kept it functioning today.
But again, this is like a tourniquet on a patient that's bleeding out.
It's like, oh, you lost your leg, man.
The femoral artery is bleeding out.
Oh, we slapped a tourniquet on that, twisted that sucker super tight.
Patient's screaming.
You know, you're going to have to amputate more later, but at least the blood is no longer gushing out.
That's where we are today.
It's like, this patient has a little more time.
So that's kind of a blessing.
Sorry about the graphic example there.
But that's where we are.
I mean, this banking system is bleeding out, folks.
And they slapped a tourniquet on it here, and it got a little more time.
What are you going to do with that time?
What are you going to do with it?
You going to be ready when they can't patch it up anymore?
How ready are you going to be?
Well, okay, so best case and worst case.
Best case scenario is that this whole bank run contagion thing doesn't happen, it calms down, and then we all end up paying for it in inflation, which is, that's a certainty.
We're going to pay for this through inflation.
That's the best case scenario.
Worst case scenario is that this whole thing accelerates over the next few months, especially with the coming rate hikes.
And then sometime, maybe this summer, maybe later this year, maybe another Black Monday in October, sometime, or Black Friday, let's say, you wake up and it's over.
At some point you wake up and it's over.
And it's like all the banks have just shut down, like Silicon Valley Bank, but everywhere.
And J.P. Morgan, Wells Fargo, Bank of America, all of it.
It's all shut down, all bail-ins, bank freezes, all transactions halted.
That day is coming.
That is a, it's an economic certainty.
That day is coming.
Is it coming today?
No, thank God.
Is it coming next week?
I hope not.
Is it coming this year?
Perhaps.
Or if you're really, really optimistic, no, no, it's not going to happen until 2027.
Okay, great.
But it's going to happen.
And when that day comes, will you be ready?
Whenever it is, will you be ready?
Because what just happened with Silicon Valley Bank was a little teaser round, a little appetizer of what's coming.
Like the full buffet has yet to be served.
You got a little appetizer right there.
People freaking out, thinking their lives are over, you know, for 48 hours or whatever it was, 72 hours.
And then it's like, oh, our deposits are covered.
We're good.
You know, I thought that life was over.
Now suddenly it's back.
Are they just going to go back to their old patterns?
Are they going to continue to put too much money into the banks and trust the banking system?
I kind of doubt it.
I think a lot of people got a little bit red-pilled over the weekend about, you know, you can't trust the banking system.
I think that's what just happened.
You know how COVID caused people to not trust Big Pharma, not trust the vaccines, not trust the CDC or the FDA? And then everything that's happened under Joe Biden has caused people to not trust the government, not trust elections, not trust the White House.
Well, oh, and who trusts the FBI anymore?
Not many people.
Nobody trusts the FBI. Who trusts the State Department?
They claim, oh, we didn't blow up Nord Stream.
Are you kidding me?
Newland.
I don't know if you can hear my dog howling out there.
But who trusts the banking system now after what we just saw?
Fewer and fewer people will trust the banking system.
And since our banking system is a fractional reserve system, it only exists because of faith, kind of blind faith in the system.
By design, if everybody wants their money out, the bank collapses.
Frankly, even if 20% of the people want their money out, every bank in America, or virtually every bank, collapses.
Because I don't know of any bank that keeps 20% of...
Deposits on hand, ready for people to withdraw.
I don't think any bank's got 20%.
Maybe there is one that I don't know of, but I've never heard of that.
Most banks have somewhere maybe between 5% and 10%, and even that's generous.
So if one out of five people ask for their deposits back, virtually every bank collapses.
That's just the structure of the system, fractional reserve system.
So the only way it remains viable is if people continue to trust the system.
And yet, every action by the FDIC and the Treasury and the Fed, to anyone paying attention, actually erodes trust in the system long-term.
Again, they averted a total collapse today.
And I admit, that's good.
I don't want to see a total collapse.
But they eroded trust in the system down the road.
Because anybody who knows what's going on is going to find alternatives.
They're going to get out of the banking system as much as they can, more and more.
You're going to see massive demand on gold and silver this week.
Well, for weeks to come.
Massive.
You're going to see more people, frankly, getting into crypto, I think.
I do.
Even though...
Crypto's got its own problems and its own risks and so on, but at least, at least, it's an alternative that regulators can't easily touch and that is very portable.
And I talked last week about Monero XMR, which is a privacy crypto.
And then one of our listeners, whoever you are, thank you, sent in a note and said, oh, I should be talking about Epic Cash.
So I don't know anything about Epic Cash, but I looked it up.
It looks like a peer-to-peer decentralized system.
I'd love to interview somebody from Epic Cash if you're listening.
I'd like to find out more because we need alternatives.
We need peer-to-peer decentralized systems to handle transactions and transfer money outside the banking system because the banking system is going to crater.
Now, I believe in gold and silver because it's simple, it's real, it's physical.
But it's also hard to transfer a bunch of silver.
You're trying to load it up in your pockets, you know, any substantial sum of money, it gets heavy.
Yeah, trust me, it gets heavy.
You buy a case of silver, you're like, dang!
That's a lot of weight and not even that much money.
It's going to be hard to lug this thing around, you know?
So there are pros and cons to every system.
And it's good to have a lot of diversity in your assets just in case.
And by the way, some of these wallet systems that you can download to your phone or your computer...
Wallet software, you know, crypto wallets.
There's one called Cake Wallet that runs Monero.
And then there's a wallet that I've used before called Exodus that does a bunch of different cryptos.
There's a lot of wallets out there.
There's lightweight wallets, mobile wallets, Windows, you know, Mac wallets, whatever.
Did you know that these wallets, you can restore them just by memorizing a list of words?
Yeah, um...
For example, one of the wallets that I've used before has 25, it'll give you 25 words.
And you have to write these words down.
Because if you ever lose your wallet or lose your password and you need to restore your wallet, all you have to do is essentially type in these 25 words.
And boom, shazam, your wallet is back.
Now, you realize that you could, with some trouble, you could memorize these 25 words.
You could make up a story about 25 words.
And for whatever reason, by the way, nexus is one of the words that they like to use in these 25 words.
I don't know why.
But they use words like nexus, like flowers, you know, and gorillas or whatever.
There's all kinds of words.
So you could, it gives you the 25 words.
Like, this is your seed.
These are your seed words right here.
If you can remember these 25 words, then your wallet is in your head.
You don't even need something.
You don't even need a piece of paper.
You can cross borders.
You can fly to another country with your wallet in your head.
That's pretty cool.
Now, how do you memorize 25 words?
Make up a story.
Make up a story.
It's very simple.
Just make up a story.
Like, I got yanked through a nexus and then there was a gorilla holding some flowers.
You go through, you make up a story about all those words.
And if you visualize the story and you tell yourself the story enough times, you'll memorize it.
You could recreate your list of 25 words or whatever the list is.
And so you have your wallet in your head, in essence.
Yeah, something to consider.
Or if you have a really bad memory, you could tattoo it on your butt, you know?
Just have it tattooed backwards so you can look in the mirror and read it.
You know, reverse left to right.
Like, butt cheek password, right?
That'd be a strange tattoo request.
What tattoo do you want today?
I want you to tattoo these 25 words on my butt.
For what purpose?
Never mind, you know.
But you might want to secretly mix them up or something.
Otherwise, your tattoo artist will know your password.
Not good.
Or anybody that looks at your butt, i.e.
TSA agents doing a strip search.
What's this?
Oh, looks like a series of words, probably a password on your butt.
Let's try to type those in.
I know it's a weird world, right?
It's a bonkers type of world.
But security comes at a cost.
For the record, I do not have anything tattooed on my butt.
In fact, I have no tattoos whatsoever.
I will not be tattooing passwords on my ass.
I'm just saying you could.
In fact, I'm going to give you the best idea ever.
Here you go.
This is the best idea ever.
If you really want to hide crypto and you want to have the password in your head, But you don't know if you can trust your memory.
Here's what you do.
There's a little bit of inconvenience associated with this.
First of all, you shave your head and then you tattoo the password on the back of your skull.
Again, in reverse, so you can read it in a mirror.
You have to hold up a mirror to another mirror.
And then you let your hair grow back.
Probably nobody will look for password tattoos on the back of your skull after your hair grows back.
Probably.
Just saying.
And you could have the tattoo color kind of match the color of your hair.
And you may not want to put the actual passwords.
You may want to have a secret variation or mix them up or reverse the order or something.
Something that you do remember.
Like, oh, it's actually every other word or whatever.
That's a very secure system.
Even the TSA is probably not going to comb through your hair like a monkey looking for secret passwords.
Probably not going to happen.
They'll pull your pants down and look up your butt, but they're probably not going to look under your hair on the back of your head.
I know it's weird, but that's the case.
See, you never know what kind of practical knowledge you're going to learn here on the Situation Update.
Every day, you learn something here that you normally wouldn't find anywhere else.
Makes it worth the wait, doesn't it?
Mm-hmm.
Thanks for listening.
All right.
Before I let you go here, if you missed the interview over the weekend with John Perez, you know, the crypto Nostradamus, make sure you check that interview.
It's up on my channel there on brighteon.com.
And I have some interviews coming up this week.
I've got several interviews.
They were pre-booked and had nothing to do with banks and finance.
I'm still keeping those interviews, but I've added an interview with Andy Sheckman, That's coming up.
Let's see.
What else do I have?
Oh, yeah.
We've got a couple other really good interviews.
I'm going to try to add an interview.
I'm going to try to get Steve Quayle on, see what he has to say about all this.
And I don't know.
Maybe I'm going to see if Peter Schiff wants to come on at some point.
He's probably pretty occupied, but we'll see.
Should be interesting.
Maybe I'll reach out to Gerald Salenti and we'll just see if we can get some more finance people on, talk about what's happening this week.
But we've got Andy Shackman coming up and he's good.
And let's see if I can get Chris Olson on here from Treasure Island as well.
But we'll pack in as many interviews as we can, so stay tuned.
You're going to get some good information this week.
And just, folks, be risk-averse.
You are living in a world of eminent bank collapses that are just barely being averted.
Just barely.
And nobody knows how long the tourniquet is going to hold.
Nobody knows when the system falls apart or how long it holds together or where it fails first.
When the dam breaks, nobody really knows exactly.
So just be risk averse this entire time.
Be ready.
Be nimble.
Have multiple accounts with multiple banks.
Have multiple options.
Make sure you know how to use crypto wallets.
Make sure you look at gold and silver.
Look at land.
Look at ammo.
All these things we always talk about.
Be ready.
Garden seeds.
Be ready in every case for a collapse of the system because what the last week just proved to us is that It just about happened.
And the Black Swans are revving up their engines.
The Black Swans are about to take flight, and they're going to have like a Black Swan dive bomber parade or something on Wall Street probably soon.
It's going to be like a Black Swan suicide kamikaze festival or something.
It's coming.
Just be ready.
Be ready.
If I meet some of you and your heads are shaved, I'll know what you just did, too, with the passwords.
Nice job.
If your friend's like, why did you shave your head?
And you can answer, I only shaved the back part.
Yeah, it's okay.
And they're like, no, that's even more weird.
You only shaved the back of your head.
What is that?
All right, you'll have to explain it to them.
Okay, thanks for listening.
Mike Adams here, the Health Ranger.
Brighteon.com.
We'll be back with you tomorrow from the studio with more updates on all this fallout.
Today is going to be a very interesting day, so watch for headlines on censored.news and also check out our hosts on brighteon.tv and brighteonradio.com.
Have a great day.
Talk to you tomorrow.
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